(21) ACCOUNANCY BOOK KEEPING, ACCOUNTING AND ACCOUNTANCY
·
Meaning.
It refers to a systematic knowledge
of accounting concerned with the principle and techniques which are applied in
accounting. It tell us how prepared the books of account, how to summarize the
accounting information and how to communicate it to the interested parties.
Accountancy is broad concept. Book
Keeping is the recording branch of accounting. Accounting includes recording of
transactions.
ਲੇਖਾਪਾਲਣ (Accountancy) ਇਕਕਿੱਤਾ ਹੈ, ਜਿਸ ਵਿੱਚ ਲੇਖਾਵਿਧੀ
(Accounting)
ਸ਼ਾਮਲ ਹੈ।
ਬਹੀਖਾਤਾ (Book
Keeping) ਲੇਖਾ
ਵਿਧੀ ਦਾ ਹਿੱਸਾ ਹੈ।
·
Definition:
“Accountancy is refers to the entire
body of theory and process of accounting,” Kohler
“Every business enterprise has an
accounting system. It is a means of collecting, summarizing, analyzing and
reporting in monetary terms information about the business transaction.” Prof.
Robert. N. Anthony.
·
Difference between Book Keeping and Accountancy:
|
Book Keeping |
Accountancy |
|
Identifying the transactions of
financial nature, measuring it, recording the measuring transactions and
classifying into ledger. Book Keeping has a limited scope. It provide detail of the daily
transactions. Book Keeping is clerical in nature
and does not requires special skills. Book Keeping requires the transactions
for Jouralising and Posting. |
It is body of knowledge prescribing
certain rules or principles to be observed while recording, classifying and summarizing
of transactions. Accountancy has a wider scope. Accountancy provides the details of
whole year. Accountancy is dynamic in nature requires
special skill ability to analyses. Accountancy requires all the
accounting principle for profit and Loss and Balance Sheet. |
·
Difference between Book Keeping and Accounting :
|
Book Keeping |
Accounting |
|
Identifying the transactions of
financial nature, measuring it, recording the measuring transactions and
classifying into ledger. Book Keeping is Primary Stage. Its main objective to maintain systematic
record of transaction. Book Keeping function is routine in
clerical in nature. Book Keeping function is performed by
junior staff. It can be performed by persons
having limited level of knowledge. |
Summarizing, Analysing,
Interpreting the Summarized result and Communicating to interested Parties. Accounting is Secondary Stage. It
starts where Book Keeping ends. Its main objective to ascertain the
net result and financial position of the business. Accounting function is analytical
in nature Accounting function is performed by
senior staff. It can be performed by person
having higher level of knowledge. |
·
Difference between Accounting and Accountancy
|
Accounting |
Accountancy |
|
It is concerned with
recording classifying and summarizing of transactions. It is narrow in
scope. It depends on book
keeping. Its main function is to ascertain
the net results and the financial position of the business and to communicate
them to interested parties. |
It is body of knowledge prescribing certain rules or principles to be observed while
recording, classifying and summarizing of transactions It is much wider in
scope. It depends both on
book keeping and accounting It includes the decision making
function also on the basis of information provided by book keeping and
accounting. |
